Ceconomy stock starts new year rather weak after mixed 2023

The Ceconomy stock has lost around 13 percent since the beginning of January and is now trading just above the 2 euro mark (as of February 9, 2024, 10 am). Despite presenting solid numbers for the Christmas business in 2023, the holding company of MediaMarkt and Saturn has not been able to gain investor trust.

Ceconomy with strong start to new fiscal year 2023/2024

With sales of just under 7 billion euros, revenue was slightly below the previous year’s level, but adjusted EBIT and net profit were able to increase in the first quarter of fiscal year 2023/2024. Adjusted EBIT was up almost 8 percent at 248 million euros compared to Q1 of 2022/2023, and profits climbed by almost 16 percent to 147 million euros.

Ceconomy has confirmed its outlook for the full year, expecting a slight increase in sales and a significant increase in adjusted EBIT compared to 2022/2023, driven by a recovery in business in the important DACH region.

Ceconomy stock: Limited potential for growth

The numbers for the first quarter of fiscal year 2023/2024 were overall convincing, but the Ceconomy stock has not been able to benefit from them. On the contrary, the stock has fallen by almost 7 percent this week alone and is once again trading just above the 2 euro mark. While the stock may be undervalued from a fundamental perspective, there may be a lack of trust in the company’s future.

Although the Ceconomy stock does have potential for growth, investors should not expect significant jumps at the moment. Analysts also see limited potential for the stock, with Barclays (target price of 2.20 euros) and Baader Bank (target price of 2.00 euros) confirming their targets after the latest quarterly numbers.

Source: https://aktienscreener.com/